Stock Futures Get a Boost From Alcoa
Futures for the Dow Jones Industrial Average were up 119 points, or 122 points above fair value, at 12,334. Futures for the S&P 500 were up 14 points, or 13 points above fair value, at 1290. Futures for the Nasdaq were up 22 points, or 22 points above fair value, at 2360.
Despite projections for weaker fourth-quarter earnings from U.S. corporations, a chorus of analysts say that extreme bearishness is making way for potential upside surprises in stocks.
"The good news is expectations are low despite the economy showing some signs of improvement," wrote Gary Thayer, chief macro strategist at Wells Fargo Advisors. "We believe investors are more likely to see better-than-expected results rather than weaker-than-expected results."Alcoa (AA), which unofficially marked the beginning of the earnings season, was gaining 2.4% in premarket trading despite reporting its first quarterly loss since 2009 after Monday's close. The company said it lost 3 cents a share in the quarter, in line with analysts' estimates. However, it reported revenue of $5.99 billion in the fourth quarter, beating the forecast for $5.7 billion, and gave a positive outlook on global demand for aluminum.
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